2008 digital advertising dealer summit

FMC LeadManagement DIGITAL TEAM 1

Digital Advertising Dealer Summit

April 18, 2023

Welcome

• Play 2/3 min video

Digital Dealer Speak

• OEM (1), Ad Association (2) and Dealer Websites (3)• Inventory Aggregation Portals• Lead Producers and Resell Aggregators• Specialized Microsites and Landing Pages• URL and domain management portfolios• CRM and Lead Management Tools• Automated Email Marketing and Communication systems• Assigned Resources and Business Processes• Search Engine Optimization• Social Networking and Reputation Management• Digital Advertising

– Search Engine Advertising– Content and Demographic Network Ad Placements– Behavioral Targeting Campaigns– Retargeting Campaigns– Site, Services and Event Sponsorship Campaigns

What is Automotive Digital Marketing?

Automotive Ad SpendShift to Internet

Digital Media Spending Growth

*Source: IAB.net

0.5% 2.0%5.0%

10.0%9.0%

25.0% 27.0%

10%15%20%25%30%

2005 2006 2007 2008 FCST

Tier 2

Tier 1

Digital Spend % - TIER I / TIER IITier I and Tier II spend has increased as Internet shopping activity has grown

Source: Ad Activity, SEM/Display

Digital Growth - Retail SalesInternet Sales as a % of Retail sales continue to grow in importance

Source: CKS Sales Match

% of Ford buyers research on-line

Car shopper are qualifying dealers by researching online with the vast majority using search

All Car Buyers are “Internet Customers” Majority of Vehicle Research is Being Done Online

Moving beyond “Why Digital”

1999 2000 2001 2002 2003 2004 2005 2006 200710.0%

54.0%60.0%60.0%

64.0%64.0%67.0%68.0%70.0%

26.0%33.0%

43.0%47.0%47.0%

54.0%53.0%59.0%61.0%

New Used

Why doesn’t Auto advertising have the same impact?

Other, 17.6 hours

News-papers,

3.9 hoursTelevi-

sion, 16.4 hours

In-ter-net, 32.7 hours

Weekly Hourly Media Consumption 1

(Total time spent using all media was 70.6

hours)

1. IDC Study, U.S. Consumer Online Behavior Survey Results 20072. 2006 National Automobile Dealers Association Data

Internet

Television

Newspaper

Direct Mail/

Radio/Other

11.50%

19.50%

27.30%

28.30%

Percent of Advertising Spend 2

Only travel is more influenced by Online media

Source: DoubleClick Touchpoints III

“Which one of these information sources was most important when making decisions about buying your vehicle?”

nds TV

40.0% 35.3%

8.2%4.4% 3.6%

Today’s Biggest Dealer Advertising ChallengeOverspending on Newspaper, Radio, Outdoor & Mail Relative to Usage

Newspaper Radio Television Internet Other

Dealer

Consumer

The Average Car Dealer’s Advertising Spend Does Not Match The Car Buying Consumer’s Media Consumption Behaviors…

Average Dealer Advertising Spend vs. Consumer Media Consumption

Dealer Advertising Budgets Not Aligned

1/10TV & RADIO

3/10PRINT

8/10INTERNET

FEW LEADS

DILUTED OPPORTUNIT

Where Do You FindThis Sales Opportunity?

WHY?PRODUCIN

G LESS THAN

DESIRABLE RESULTS

92% of Ad Budgetfocused at 30% of Customers 8% of Ad Budgetfocused at 70% of CustomersDealers are relying on 3rd Party Lead Providers

for Digitalwho send same lead to your dealership and others

Dealer Ad Budgets RealignedSTRATEGY

1/10TV & RADIO

3/10PRINT

8/10INTERNET

2008 AUTO BUYERMORE

LEADS ON OWN

HIGHER QUALITY

HIGHER CLOSING %

HIGHER GROSSLOWER

COST PER LEAD

STRATEGY

25% of Ad Budgetfocused at 70% of Customers• Dealer becomes regional buying service• Dealer generates more high quality leads on

own• Dealer quickly captures higher share of

online market

Objective AnalysisWhere are Dealers shifting money from, so that Digital Marketing does not increase overall advertising budgets or Costs PVR?

Includes auto manufactures, national dealer associations, individual dealerships and other market vendors, excludes auto insurance and

retail companies.

Source: eMarketer

Newspaper spending is declining

$4.9$5.2 $5.2

$4.6$4.3

$4.1$3.9

$3.3 $3.2

Spend (Bil-lions)

It’s not all about the lead

2004 2005 2006 20070%

Online New Car Shopper as % of Total BuyersEmail Lead Requestors as % of Total Buyers

Only 22% of dealer website visitors submit a lead

Yes; 22%

No; 88%

Submit an Online Request for

Yes; 39%

No; 61%

Visit Dealer Based on Online

Information

39% visit a dealer based on information found online

The vehicle shopping process takes about three months for the average AIU

Purchase Milestones of New-Vehicle AIU's

012345678910111213141516

Weeks Before Purchase (Mean)

Decide on typeof vehicle

Start visitingdealers

Decide it was time to purchase

Shop vehicleson the Internet

Start activelyresearching vehicles

Decide onmodel

Purchasenew vehicle

Source: 2007 J.D. Power and Associates New Autoshopper.com StudyBased to AIUs

One-third of new-vehicle buyers purchase within one month of deciding they need a new vehicle

53 or more

25 to 52

21 to 24

9 to 20 5 to 8 4 3 to 2 1 week0%

13% 13%

Shopping Timeline of AIU's

Decide time to buy

Weeks Before Purchase

27% Shopping Process Over Five Months

34% Shopping Process One Month or less

Ecommerce Elite

Most Improved

Lead Volume

Lead Response Time

Percent of Retail

Why Digital? Current Marketplace

Ford Lincoln Mercury Co-Op

Ford Lincoln Mercury Digital Advertising Program

• Do it yourself• Need some assistance• Turn Key - Complete

Ford Lincoln Mercury Digital Advertising Program

• Showroom• Phones• Lead Response

Check Current Process

Resources

• Home Portal

Resources

• DMC

Resources

Bulk Email

• Most cost effective, highest ROI

Bulk Email

WebSite

Standard DealerConnection

Premier Customization DealerConnection

Online and Offline

Promoting Your Dealership

ADP Speaker Bio / Introduction

• Page 12

Google Ad Words

• Buyer beware

Common Pitfalls

What to Measure

SEO• (Search Engine

Optimization)

SEM • (Search Engine

Marketing)

Search Defined

Digital Advertising Myths

15 Minute Break

Welcome Back

Turn Key Solution

• How much is it?• How does it work?• Who does the work?• Why would I use it?

Turn Key Solution

• Pricing• $495.00 a month• Spend only as much as you like with a

20% markup added• Month to month contract

Turn Key Solution

• How does it work

Turn Key Solution

• Who does the work• Virtual Marketing Representative (VMR)

Turn Key Solution

• Metrics• KBA

Turn Key Solution

• Tier I and II Negotiated Pricing cascaded to Tier III

Turn Key Solution

Case Studies

Relationships

Specific Media

Question and Answer Panel

2008 digital advertising dealer summit

Documents

Dealer Advertising Requirements JuLY 2016content.autotrader.com/content/dam/terms_and_conditions...Kelley Blue Book SM Instant Cash Offer Dealer Advertising Requirements vehicle’s

ASI Power Summit - Advertising Specialty Institute

Pricing Native Advertising - BIA/Kelsey Presentation to LMA Native Advertising Summit

Native Advertising presentation from Digiday Content Marketing Summit

Summit Dealer Presentation

Retention Deficit Disorder - Danny Benites - Innovative Dealer Summit 2015

A DEALER GUIDE TO Federal Advertising … · 3 | NADA Management Series: Driven A Dealer Guide to Federal Advertising Requirements This Driven management guide does not include a

Google Advertising Network Car Dealer Examples

Real Time Advertising Summit StickyADS.tv

Mortgage Tech Summit AZ 2012 Internet Advertising Compliance

FCA Dealer Marketing Solutions • PAID SEARCH • …...DISPLAY ADVERTISING VIDEO ADVERTISING PAID SEARCH PAID SOCIAL Hyper-targeted advertising opportunities on Facebook including

ShoreMaster Dealer Co-op Advertising and Marketing Funds

Advertising Insights through Segmented Analytics - Adobe Summit 2017

Komfo Summit All-star Webinar - Social Advertising

Toyota Kansas City Region Dealer Summit - 2010

Auto Dealer Advertising Compliance

Panel: Highlighting successful native advertising | Bazaarvoice Summit 2014

ADP Dealer Services Automotive Digital Advertising Managed Service Solutions

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